TaxTMI 
TaxTMI 
2014 (1) TMI 838
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....he declared income of the assessee firm being the capital introduction of a partner of the firm casting a doubt on the genuineness of the transactions without considering the submission/explanation of the assessee against the same. 3. That the Id. CIT(A) has not disposed of the grounds taken for addition of Rs.8 lacs in the hand of the assessee firm without interpreting the provisions of Sec 68 of the l.T. Act,1961 properly. 4. That the Id. CIT(A) has wrongly confirmed the Id. A.O.'s addition of Rs.35,391/- as un explained income over and above the declared income of the assessee firm on account of un- reconciled figure between the gross receipt as per P/L Account and TDS certificates without considering the fact that the same has bee....
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....bution to capital stood explained by the assessee from another firm to the extent that sum of Rs.8 lakhs obtained by the assessee from partner's wife through bank transfer was undisclosed income of the assessee firm reintroduced in the capital of the partner was brought to tax. 3. Aggrieved, the assessee appealed before the first appellate authority when on the basis of explanation to the capital introduced which portion of the introduction has been taxed by the Assessing Officer was confirmed on the learned CIT(A) indicating that when the bank transfer took place there is no necessity to introduce cash in the assessee firm's books of account insofar as the AR of the assessee explained that the ex-partners required repayment in cash only....
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....st on capital and salary and incentives from the firm were to crystallize in the hands of the outgoing partners. The Assessing Officer therefore accepted part contention of the assessee insofar as he held that the loan creditors were identifiable and genuine and creditworthy to the extent that the loan from the partner's wife was doubted insofar as the cash was after the bank transfer amongst the husband and wife was introduced as cash in the firm which cash was paid to the outgoing partners. The learned CIT(A) on the other hand declining the expenditure of the assessee held that the cash entries have been made to the extent the cash availability was on record insofar as per the fund flow Shri Anil Kumar Chaudhury had sufficient cash on the....
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..... Continuing with this issue we are to find the cause for issue of notice u/s.251(2) for enhancing income in the light the learned CIT(A)having verified the cash book produced by the assessee to explain the payment of cash to the outgoing partners against their capital. We have perused the order of the learned CIT(A) wherein he has tried to combine the different negative cash balance from 5th to 16th March,2008 to book peak negative cash balance at Rs.5,33,003 when it was brought to the notice of the learned CIT(A) that there is no negative peak balance insofar as the expenses payable have been paid on the cash being handled by the Depot Manager who had left the service on 5th March and held the cash balance to be handed over to the assesse....
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....nk which bank account corresponds to the transfer entries made between the husband and wife. The learned Counsel of the assessee also supports that Shri Anil Kumar Chaudhury has filed its return indicating the contribution of capital from the various sources observed by the Assessing Officer. For the purpose of payment to ex-partner the acknowledgement of receipt of cash has been inscribed in the Deed of Dissolution forming part of the Paper Book pagers 12 to 16. 5. Now coming to the last issue with respect to confirming the taxation of excess income again by the Assessing Officer and confirmed by the learned CIT(A), the learned Counsel of the assessee has filed the reconciliation statement for TDS at page 18 which reconciliation stateme....